When homes are bought in MA, real estate transfer taxes (sometimes called deed recording taxes) are due. Transfer taxes are different from property taxes in that they occur only once at closing while property taxes are continually charged. It is useful for home buyers and sellers to understand what a transfer tax is and how much it may impact closing costs. The following is information on MA real estate transfer taxes and who pays them.
MA Real Estate Transfer Taxes and Who Pays Them
The transfer of real estate means a grant, sale, exchange, assignment, quitclaim, contract for sale, or other change of ownership in title to real property. In MA, sellers must pay real estate transfer taxes. The sum of MA real estate transfer taxes is based on the purchase price of the home and the tax rate of 4.56 per thousand. It is levied as part of closing costs for sellers and is commonly required before the deed recorded. The figuration of the tax is usually the responsibility of the closing attorney and is detailed as part of the settlement statement.
Information On MA Real Estate Transfer Taxes
The amount of tax due is based on the applicable rate on the day that a closing takes place and the deed is recorded. From time to time property taxes could change. Proposed increases are often controversial. Ask a real estate professional for up-to-date updates on tax rates. You should also check with your tax preparer on whether real estate transfer taxes have any tax advantages. Information on MA real estate transfer taxes and who pays them, as provided above, is intended as an introduction. Contact Christopher Graves at Sierra Pacific Mortgage Company by calling 978-376-5389 or emailing email@example.com to get additional information.